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Topic: Does Bubbles add real Value to economic growth? - page 2. (Read 262 times)

copper member
Activity: 2744
Merit: 1250
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I think the bubble is benefitting those who are rich already in the market, not the ones who have less. Not entirely though. I believe that in the market itself is going to be unpredictable with such people like Elon Musk being crypto inclined and we will never know what he's going to say next until it happens. I think it has real value but it would immediately be gained by other people though.
member
Activity: 868
Merit: 63
From my perspective, the economy is somehow positively affected by bubbles. By that I mean, bubbles do add real value to economic growth. However, the overall can show a different picture from an individual one. Many people might lose their money during this occasion while companies, firms, big players are the ones receiving huge advantages in various ways. But as long as the economic growth, Bubbles are still harbored and manipulated. Thus, just try to make as much money as you can with this scheme. Remember to be very careful because you can lose all of your money if you arbitrarily invest in extremely intense bubble
I don't think so, bubble in economy means that a collapse is imminent and the poor will be the one that is going to get hit the hardest. If the big players doesn't get hit then there is no significant growth in economy because the money is not circulated properly. To be honest, if I were to prosper because a bubble will burst, I wouldn't accept it because a lot will be affected and I do agree about the bubble manipulation, but what I disagree is the part where you can lose money when you invest, it could be a half truth in my opinion because most of the big investors in bubble that are in the circle of the few are reaping big profits, and I do not like the idea of profiting from it.
legendary
Activity: 1904
Merit: 1096
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From my perspective, the economy is somehow positively affected by bubbles. By that I mean, bubbles do add real value to economic growth. However, the overall can show a different picture from an individual one. Many people might lose their money during this occasion while companies, firms, big players are the ones receiving huge advantages in various ways. But as long as the economic growth, Bubbles are still harbored and manipulated. Thus, just try to make as much money as you can with this scheme. Remember to be very careful because you can lose all of your money if you arbitrarily invest in extremely intense bubble
hero member
Activity: 2968
Merit: 913
Nope,price bubbles don't add any value to the economic growth of any country.
Price bubbles in the financial markets are created by the central banks and their excessive money printing.
The connection between that financial markets and the real 'brick and mortar' businesses are non existent.
Stocks can increase it's price tremendously,even though the company,that issues those stocks isn't making any profits.Just look at Gamestop,for example.Does this add any value to the economy?Of course not.

i try to understand how bubbles work on economic , and well , its like pyramid scheme i guess .
for example : person X bought doge at 0.5 cent price , then the price rise to 2 cent , and after that, person Y bought doge on that price , and a few moment later , price rise more to 5 cent , and the person X sell his doge at 5 cent price , and after X action selling his doge , the price down to 4 cent , then person Y reallized this is the limit i must take, then he sell it , and make the price go to 3 cent , then person A think probably a correction , then he join at 3 cent price.

well , probably i am wrong , but from that explanation, economic will growth for some reason.

No,price bubbles aren't a pyramid scheme.Price bubbles are more like a legal market manipulation or a market distortion.
mk4
legendary
Activity: 2716
Merit: 3817
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For instance, he recently tweeted that he will be speaking on Clubhouse today regarding DODGECOIN.

All he said was that he's going to be on Clubhouse, he didn't say anything specific about it going to be about DOGE.


As for economic value, while I'm definitely not an expert, not really I guess? Bubbles just gives out publicity to that certain asset that's going through a "bubble" stage; and since they mostly correct in price in the end anyway, I think it just quickens the price discovery stage of that certain asset.
hero member
Activity: 1638
Merit: 518
i try to understand how bubbles work on economic , and well , its like pyramid scheme i guess .
for example : person X bought doge at 0.5 cent price , then the price rise to 2 cent , and after that, person Y bought doge on that price , and a few moment later , price rise more to 5 cent , and the person X sell his doge at 5 cent price , and after X action selling his doge , the price down to 4 cent , then person Y reallized this is the limit i must take, then he sell it , and make the price go to 3 cent , then person A think probably a correction , then he join at 3 cent price.

well , probably i am wrong , but from that explanation, economic will growth for some reason.
member
Activity: 490
Merit: 31
There is gold in volatility..
Over the weeks, we have seen bubbles being created in the market by some powerful people such as Elon Musk.

For instance, he recently tweeted that he will be speaking on Clubhouse today regarding DODGECOIN. Adding this to the reditt marketing force.

I want to know if the bubble these economic agents create will add to the value of the economy.

You know bubble would also correct itself.
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